PRINCIPLES OF MARKETING
Fall 2025
Creating Customer Value
and Engagement
Learning Objectives
Define marketing and describe its core purpose.
Outline the five-step marketing process.
Understand key concepts: needs, wants, demands, value,
satisfaction.
Design a customer value–driven marketing strategy.
Distinguish between various marketing management
orientations.
Explain customer relationship management (CRM).
Identify and discuss recent marketing trends including digital,
social media, and engagement marketing.
What is Marketing?
Marketing is a process by which companies create value for
customers and build strong customer relationship to
capture value from customers in return.
✓ From managerial definition:
“The art of selling products”
Steps in Marketing Process
Understand marketplace and customer needs.
Design customer value-driven strategy.
Construct an integrated marketing program.
Build profitable relationships and create customer delight.
Capture value to create profits and customer equity.
value creation precedes value capture
Understanding the Marketplace and Customer Needs
Customer needs, wants, and demands
Market offerings
Customer Value and satisfaction
Exchanges and relationships
Markets
Needs, Wants & Demands
Needs: Basic human requirements
Wants: Shaped by culture and personality
Demands: Wants backed by purchasing power
You need caffeine and want a cold brew
from Starbucks and have the money to
buy it = demand
Market Offerings & Myopia
Market offerings are some combination of products,
services, information, or experiences offered to a
market to satisfy a need or want.
Marketing myopia is focusing only on existing wants and
losing sight of underlying consumer needs
Customer Value and Satisfaction Expectations
Customers
• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Exchange and Markets
Exchange is the act of obtaining a
desired object from someone by
offering something in return
Markets are the set of actual and
potential buyers of a product or
service
Designing a Customer-Driven Marketing Strategy
What Two Key How can we Differentiation
Segmentation & customers
Questions serve them
Targeting will we
best?
& Positioning
serve?
Value Proposition
A set of benefits a company promises to deliver to
customers to satisfy their needs
Designing a Customer-Driven Marketing Strategy
Demarketing
is marketing to reduce demand temporarily or
permanently; the aim is not to destroy demand
but to reduce or shift it
Designing a Customer-Driven Marketing Strategy
Production Product Selling Marketing Societal
concept concept concept concept concept
Marketing Orientation
Concepts Focus Example
Production availability/low cost Imtiaz Stores, PEL, IKEA
Product quality and performance Apple, Shan Foods
Selling aggressive selling Insurance, Medical
Marketing customer needs Tapal
Societal Society and environment Body Shop, Unilever
Marketing Orientation | Production Concept
Based on idea that consumers will favor
products that are available or highly
affordable
Make it cheap & widely availablw
(e.g., early Suzuki Mehran in Pakistan).
16
Marketing Orientation | Product Concept
Based on the idea that consumers will favor
products that offer the most quality,
performance, and features. Organizations
should therefore devote its energy to
making continuous product
improvements.
Make it high-quality and innovative” (e.g.,
Apple iPhone).
17
Marketing Orientation | Selling Concept
Based on the idea that consumers will
not buy enough of the firm’s
products unless it undertakes a
large scale selling and promotion
effort
Push it hard through sales force/ads”
(e.g., insurance agents)
18
Marketing Orientation | Marketing Concept
Based on the idea that achieving organizational
goals depends on knowing the needs and wants of
the target markets and delivering the desired
satisfactions better than competitors do
“Find out what customers need and deliver it” (e.g.,
Foodpanda adapting to Pakistani eating habits).
19
Marketing Orientation | Societal Concept
Based on the idea that a company should make good
marketing decisions by considering consumers’
wants, the company’s requirements, consumers’
long-term interests, and society’s long-run interests
Balance profit, customer needs, and society’s well-
being” (e.g., Unilever’s Lifebuoy handwashing
campaigns
20
Preparing an Integrated Marketing Plan and Program
The marketing mix
Integrated marketing program
21
The Four P’s (Marketing Mix)
Product Price Promotion Place
Right Right Most Right
Product Price Suitable Available
promotion place
22
Preparing an Integrated Marketing Plan and Program
Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to
chosen customers.
23
Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction
24
Building Customer Relationships | Building Blocks
Customer Customer
perceived value satisfaction
The difference The extent to which a
between total product’s perceived
customer value and performance matches
total customer cost a buyer’s
expectations
Benefit
Performance
Vs
Vs
Cost
Expectations
25
Loyalty & Retention
Loyalty
programs
Basic Full
low Partnership
margin
High Value
Personalization
Loyal customers are & digital CRM
more valuable and less
price sensitive.
Customer Engagement in the Digital Age
Engagement marketing
Making the brand part of consumers' lives
Customer-managed relationships
Two-way communication
Online, social, mobile platforms allow real-time,
personalized engagement
Changing Marketing Landscape
Major Trends:
Rise of digital and mobile marketing
Social media-driven engagement
Emphasis on sustainability and social responsibility
Customer empowerment and co-creation
Big data and personalization
Recap & Review
1. How do we define marketing today?
2. What’s the difference between a need and a
want?
3. What is marketing myopia?
4. Why is CRM important?
5. Name one emerging trend in marketing
